Mr. President, today I will reintroduce a bill to repair and strengthen the presidential public financing system. Bipartisan support is a key element of successful campaign finance reform efforts,…
Mr. President, today I will reintroduce a bill to repair and strengthen the presidential public financing system. Bipartisan support is a key element of successful campaign finance reform efforts, and I am therefore delighted that the junior Senator from Maine, Sen. Collins, has agreed to be the principal cosponsor of the bill.
The Presidential Funding Act of 2007 will ensure that this system will continue to fulfill its promise in the 21st century. The bill will take effect in January 2009, so it will first apply in the 2012 presidential election.
The presidential public financing system was put into place in the wake of the Watergate scandals as part of the Federal Election Campaign Act of 1974. It was held to be constitutional by the Supreme Court in Buckley v. Valeo. The system, of course, is voluntary, as the Supreme Court required in Buckley. Every major party nominee for President since 1976 has participated in the system for the general election and, prior to 2000, every major party nominee had participated in the system for the primary election as well.
In the 2004 election, President Bush and two Democratic candidates, Howard Dean and the eventual nominee John Kerry, opted out of the system for the presidential primaries. President Bush and Senator Kerry elected to take the taxpayer-funded grant in the general election. President Bush also opted out of the system for the Republican primaries in 2000 but accepted the general election grant. Several of the leading candidates for President in the 2008 election are not participating in the primary system, and it remains to be seen whether either major party candidate will accept public funds in the general election.
It is unfortunate that the matching funds system for the primaries has become less practicable. The system protects the integrity of the electoral process by allowing candidates to run viable campaigns without becoming overly dependent on private donors. The system has worked well in the past, and it is worth repairing so that it can work in the future. If we don't repair it, the pressures on candidates to opt out will increase until the system collapses from disuse.
This bill makes changes to both the primary and general election public financing system to address the weaknesses and problems that have been identified by participants in the system, experts on the presidential election financing process, and an electorate that is increasingly dismayed by the influence of money in politics. First and most important, it eliminates the state-by-state primary spending limits in the current law and substantially increases the overall primary spending limit from the current
limit of approximately $45 million to $150 million, of which up to $100 million can be spent before April 1 of the election year. This should make the system much more viable for serious candidates facing opponents who are capable of raising significant sums outside the system. The bill also makes available substantially more public money for participating candidates by increasing the match of small contributions from 1:1 to 4:1.
One very important provision of this bill ties the primary and general election systems together and requires candidates to make a single decision on whether to participate. Candidates who opt out of the primary system and decide to rely solely on private money cannot return to the system for the general election. Candidates must commit to participate in the system in the general election if they want to receive Federal matching funds in the primaries. The bill also increases the spending limits for participating candidates in the primaries who face a nonparticipating opponent if that opponent raises more than 20 percent more than the spending limit. This provides some protection against being far outspent by a nonparticipating opponent. Additional grants of public money are also available to participating candidates who face a nonparticipating candidate spending substantially more than the spending limit.
The bill also sets the general election spending limit at $100 million, indexed for inflation. If a general election candidate does not participate in the system and spends more than 20 percent more than the combined primary and general election spending limits, a participating opposing candidate will receive a grant equal to twice the general election spending limit.
This bill also addresses what some have called the ``gap'' between the primary and general election seasons. Presumptive presidential nominees have emerged earlier in the election year over the life of the public financing system. This has led to some nominees being essentially out of money between the time that they nail down the nomination and the convention where they are formally nominated and become eligible for the general election grant. For a few cycles, soft money raised by the parties filled in that gap, but the Bipartisan Campaign Reform Act of 2002 fortunately has now closed that loophole. This bill allows candidates who are still in the primary race as of April 1 to spend an additional $50 million until funds for the general election are made available. In addition, the bill allows the political parties to spend up to $25 million between April 1 and the date that a candidate is nominated and an additional $25 million after the nomination. The total amount of $50 million is over three times the amount allowed under current law. This should allow the ``gap'' to be more than adequately filled.
Obviously, these changes make this a more generous system. So the bill also makes the requirement for qualifying more difficult. To be eligible for matching funds, a candidate must raise $25,000 in matchable contributions--up to $200 for each donor--in at least 20 States. That is five times the threshold under current law.
The bill also makes a number of changes in the system to reflect the changes in our presidential races over the past several decades. For one thing, it makes matching funds available starting 6 months before the date of the first primary or caucus, that's approximately 6 months earlier than is currently the case. For another, it sets a single date for release of the public grants for the general election--the Friday before Labor Day. This addresses an inequity in the current system, under which the general election grants are released after each nominating convention, which can be several weeks apart.
The bill also prohibits Federal elected officials and candidates from soliciting soft money for use in funding the party conventions and requires presidential candidates to disclose bundled contributions. The bundling provision builds on a provision contained in ethics and lobbying reform bill enacted earlier this year. It requires presidential candidates to disclose all bundlers of $50,000 or more.
The purpose of this bill is to improve the campaign finance system, not to advance one party's interests. In fact, this is an excellent time to make changes in the Presidential public funding system. The 2008 presidential campaign, which is already underway, will undoubtedly be the most expensive in history. A number of candidates from both parties have opted out of the primary matching funds system, and some experts predict that one or both major party nominees will even refuse public grants for the general election period. It is too late to make the changes needed to repair the system for the 2008 election. But if we act now, we can make sure that an updated and revised system is in place for the 2012 election. If we act now, I am certain that the 2008 campaign cycle will confirm our foresight. If we do nothing, 2008 will continue and accelerate the slide of the current system into irrelevancy.
Fixing the presidential public financing system will cost money, but our best calculations at the present time indicate that the changes to the system in this bill can be paid for by raising the income tax check-off on an individual return from $3 to just $10. The total cost of the changes to the system, based on data from the 2004 elections, is projected to be around $365 million over the 4-year election cycle. To offset that increased cost, this bill first amends the Energy Policy Act of 2005 to allow the Bureau of Land Management to implement new user fees for processing oil and gas permits. It also amends the Geothermal Steam Act of 1970 to increase the yearly maintenance fee and one-time location fee for holders of more than 10 mining claims on federal land to $150 and $50 per claim, respectively, and imposes a 4 percent royalty on the gross income from mining on existing claims. Finally, it amends the Public Rangelands Improvement Act of 1978 to use a state's fee formula to establish the grazing fees for federal land in that state.
Though the numbers are large, this is actually a very small investment to make to protect our democracy and preserve the integrity of our presidential elections. The American people do not want to see a return to the pre-Watergate days of unlimited spending on presidential elections and candidates entirely beholden to private donors. We must act to ensure the fairness of our elections and the confidence of our citizens in the process by repairing the cornerstone of the Watergate reforms.
Mr. President, I ask unanimous consent that the text of the bill and a section-by-section analysis be printed in the Record.